In a fourth quarter operations update Monday, Ring Energy Inc. released new well results from its development of the Permian Basin's Central Basin Platform (CBP).
For 4Q2016 Ring completed three horizontal San Andres wells in the CBP, which sits between the Permian's more developed Midland and Delaware sub-basins. Ring, a longtime vertical driller in the CBP, began its first horizontal foray into the play earlier this year and has been looking to add acreage there.
Ring released results from two out of the three San Andres CBP wells back in December. On Monday, the exploration and production (E&P) company said the third well, Caesar #1H, has achieved a 24-hour gross initial production rate of 506 boe/d after roughly 45 days.
"In the fourth quarter, we continued to aggressively increase our acreage position in the Central Basin, and in doing so, increased the number of potential horizontal drilling locations to over 400," CEO Kelly Hoffman said.
"Since announcing our horizontal drilling program in April, we have tripled the size of our net horizontal footprint in the CBP. We are very pleased with the initial results of our three well horizontal drilling program in 2016 and have already commenced drilling on the first of 22 projected horizontal wells in the CBP for 2017. We continue to seek opportunities that will complement our existing acreage with a focus on the CBP and expanding that footprint."
During the quarter, Ring continued to grow its acreage in the CBP, tacking on 14,600 gross acres to bring its total to 53,582 gross acres as of year-end 2016. Ring said it has roughly 43,854 CBP acres considered part of its horizontal footprint, including 413 gross horizontal drilling locations.
Net production for the quarter totaled 240,000 boe, up from 218,500 boe in the year-ago quarter and a 15% sequential increase from the 209,000 boe produced in 3Q2016. Daily net production averaged 2,725 boe/d for December 2016, up from 2,335 boe/d in the prior-year period.
Ring said it received an average price of around $40.75/boe for the fourth quarter.
The company said it also completed a saltwater disposal well in the CBP during the quarter, along with upgrades to its gas gathering system and other infrastructure.
Outside the CBP, Ring drilled and completed two vertical Cherry Canyon wells in the Delaware while re-completing five existing vertical wells there.